BTCUSDT - Comparing Fractals : Back to Distribution?

6 wrz 2022

Hi Traders, Investors and Speculators 📉📈

Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher. 👩‍🏫


Fractals as chart patterns can be especially helpful to identify trends, and possibly speculate the next direction of the price. By looking through the last parts of the bull run back in 2021 on the Bitcoin chart in the 3D timeframe, I noticed that there is a corresponding pattern currently playing out in the 1D timeframe. For ease of reference, I used a multiple timeframe analysis and placed the two charts next to each other. Can you see it?

A closer look at this pattern reveals 3 Tops, the last two tops forms an M-Pattern after which there is a drop, a period of sideways trading... and then another hard drop. This could possibly point to another Distribution phase forming, meaning we can expect liquidity (dollars) to flow out of BTCUSD and into other assets. This could be hard to determine - either more stable commodities like Gold and Silver, or even micro cap altcoins. During this all, it is to be anticipated that Bitcoin will be sold and that money (mostly dollars) will appear somewhere else in the market.

If you want to know a little bit more about my current view on the DXY and the Euro, check out this idea where I discuss the correlation between BTC and the DXY:

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